The indictment centers on the National Community Stabilization Trust, a Nevada-based nonprofit created in 2008. Sergio Barajas, 50, of Chino, served as director of community development for the nonprofit and was tasked with helping oversee more than $10,000 in federal grants the organization received each fiscal year between October 2010 and September 2015.

Federal prosecutors allege Stuelke, Art Acosta and other co-defendants paid Barajas more than $300,000. In return, the indictment alleges, they received hundreds of foreclosed homes and made millions from reselling the residences. Investigators allege Michelle Acosta with Art Acosta were part of concealing payments to Barajas.

The indictment comes after an investigation by the Office of the Inspector General for the U.S. Department of Housing and Urban Development.

Sean Emery is a crime and public safety reporter for the Register who covers state and federal courts and criminal justice issues. He has worked for the Register since 2006, previously covering breaking news, the city of Irvine, the Orange County Great Park, and the city of San Juan Capistrano.

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